Interview processes are extending due to over caution with tight budgets. But this could be counter-productive, warn recruitment experts. By Calum Robson, freelance writer.
88% of accountants believe interview processes are more rigorous than they were a year ago, according to a survey. Paul Robinson, director of Martin Ward Anderson, which conducted the survey, said employers are terrified of wasting precious headcount budgets on the wrong recruit: ‘The number of interview stages has increased, as has the robustness of the questions asked,’ he explained.
Nearly one in 10 senior accountants has faced third, fourth or fifth-round interviews. ‘Even candidates earning less than £25,000 have been called for three interviews, rather than the usual two-stage process,’ said Robinson. ‘Interview processes that typically took two weeks last year can last up to eight weeks now.’
But he warned employers to reconsider this change of approach: ‘An overly cautious interview process can quickly become a source of frustration for candidates who, as opportunities increase, may simply opt for the firm with the faster, more decisive approach. We’re already seeing some employers missing out on key hires due to an inability to make swift decisions. In the coming months, internal processes will need to be accelerated to secure the best candidates.’
War for talent
The survey found that almost half of accountants say they will start job-hunting when the economy stabilises. However, CFOs need not reserve budgets for whopping rises and irresistible counter-offers; nearly two-thirds (61%) of respondents say they’d move for lower pay, with a quarter prepared to drop 20%.
Robinson said: ‘Many people have been expected to do considerably more work by their employers during the recession, and have little loyalty to their current workplace.’ He believed that many accountants felt they were stagnating in businesses which would take too long to recover, so were prepared to accept short-term loss for long-term gain.
Cautious employers
However, it could be a while before the war for talent reaches pre-credit crunch levels. Neil Owen, director of Robert Half UK, said organisations will remain wary when hiring new people this year, as they look for continuing evidence of economic recovery. ‘For some employers, we’re likely to see a growth in the use of interim staff, who can come in to get the job done, but offer the flexibility of not increasing permanent staffing costs. While there are skills in demand, remuneration will be stable.’
The situation for employers in economies moving faster out of recession may be a little different however. Emma Charnock, Hays’ regional director for Asia, said many accountants in Australia, Hong Kong and Singapore will move jobs to compensate for salary freezes and lost bonuses over the last 18 months: ‘Increases are likely to occur across the region, particularly for in-demand skills,’ she said. ‘The top 15% of those with up to five years post qualified experience are likely to enjoy rises – and the need for employers to retain their best people will also contribute to pressure.’ However, she believed that budgets would remain relatively tight, warning that jobseekers would ‘still need to be realistic when negotiating packages’.
Investment in training and development sustained
The Martin Ward Anderson research indicates that accountants have endured greater workloads; three-quarters said they have had to carry out work previously undertaken by colleagues who had been made redundant. But while this might spell good news for those whose CVs now boast additional expertise, not everyone will be happy.
‘Some trainees and students enjoyed increased responsibility during the recession, albeit with little or no extra remuneration,’ said Lucy Davison, associate director of FSS. ‘But CFOs shouldn’t be complacent about more senior people, who willingly took on the work of juniors who were let go. They won’t expect those duties to remain in their remit when the recovery gathers pace. They’ll expect to be rewarded, even if that simply means a return to the norm.’
More positively, nearly half of accountants say their employers sustained investment in training and development, with 20% saying spend had increased. ‘Hiring freezes and redundancies resulted in lean teams and skeleton departments,’ said Robinson. ‘Employers used training to ensure remaining staff could manage the technical demands placed upon them. This proved fantastic for less experienced workers, who expanded their skills, standing them in good stead for career progression.’
But employers investing in training may have had an eye to the future, when they’ll need their best people to help take advantage of the upturn.
CFOs who got rid of dead wood know they can’t afford to lose those they have held on to. Talented people who felt unloved during the recession will be off like a shot when companies begin hiring in earnest again. As Robinson concluded: ‘Many workers feel despondent in the current market. Training reassures them of their value to their employer.’
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